UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 16

, 20 1 3



### N OTICE OF ACTION TAKEN

– DOCKET S DOT

- OST

- 2013

- 0062, DOT

- OST

- 2013

- 0063,

DOT

- OST

- 2000

- 7708, DOT

- O S T

- 1997

- 3289 , DOT

- OST

- 1999

- 5615, and DOT

- OST

- 2001

- 10369

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Applicant s : AEROVIAS de ME XICO, S.A. de C.V. (Aeromexico) ; DELTA AIR LINES, INC. (Delta) ; and COMPASS AIRLINES, LLC (Compass)

1. Docket DOT

- OST

- 2013

- 00 62

Date Filed: March 22, 2013

Date of last action: New authority

Relief Requested: Exemption for Delta for two years pursuant to 49 USC §40109, authorizing Delta to engage in scheduled foreign air transportation of persons, property, and mail between Detroit, Michigan, and Monterrey, Mexico. 1

Delta further requests a statement of authorization pursuant to 14 C.F.R. Part 212 to permit Delta to display Aeromexico’s “AM” designator code on flights operated by Delta between Detroit, Michigan, and Monterre y, Mexico.

Delta also request s a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

2. Docket DOT

- OST

- 2013

- 0063

Date Filed: March 27, 2013

Date of last action: New authority

Relief requested: Exemption for Compass for two years p ursuant to 49 USC §40109, authorizing Compass to engage in scheduled foreign air transportation of persons, property, and mail between (1) Atlanta, Georgia, and Monterrey, Mexico; and (2) Detroit, Michigan, and Monterrey, Mexico. 2

Compass further requests a statement of authorization pursuant to 14 C.F.R. Part 212 to permit Compass to display Aeromexico’s “AM” designator code on flights operated by Compass between (1) Atlanta, Georgia, and Monterrey, Mexico; and (2) Detroit, Michigan, and Monterrey, Mexico

.

Compass also request s a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

3 . Docket s DOT

- OST

- 1997

- 3289 and DOT

- OST

- 2000

- 7708

Date s filed: November 30, 2012; January 16, 2013 ; March 22, 2013; and March 27, 2013

Date of last action s : December 28, 2011; and January 27, 2012

Relief requested: Renewal of exemption for Aeromexico from 49 USC § 41301 to conduct scheduled foreign air transportation of persons, property, and mail (1) between points in Mexico and points within the United States beyond

1 Delta plans to offer daily, year

- round service between Detroit, Michigan, and Monterrey, Mexico, beginning on or about June 10,

2013.

2 The applicants state that Compass will provide Delta Connectio n services in the subject market s and will replace the services currently provided by ExpressJet Airlines, Inc. (ExpressJet). The applicants further state that ExpressJet will withdraw from the

markets when this application is granted.Aeromexico’s authorized U.S. gateway points for transborder service, for the purpose of blind

- sector codesharing services operated between the U.S. gateway points and other points within the U.S. on services operated by either Aeromexico,

De lta, or the Delta Connection carriers ; and (2) between Det r oit, Michigan, and Monterrey, Mexico by displaying its “AM” designator code on flights operated by ExpressJet

. 3

Aeromexico further requests an amendment of that exemption to permit it to conduct s cheduled foreign air transportation of persons, property, and mail by displaying its “AM” designator code on flights operated by Delta and Compass between Detroit, Michigan, and Monterrey, Mexico

. Aeromexico requests that this exemption be granted for a p eriod of at least

one year.

4 . Docket DOT

- OST

- 1999

- 5615

Date filed: November 30, 2012 Date of last action: December 12, 2011

Relief requested: Renewal of exemption from 49 USC §41301 to permit the Aeromexico to conduct scheduled foreign air

transporta tion of persons, property, and mail between Guadalajara, Mexico, and Atlanta, Georgia, by displaying its code on flights operated by Delta Air Lines, Inc. (Delta). Aeromexico requests that this exemption be renewed for a period of at least one year.

5 . D ocket DOT

- OST

- 2001

- 10369

Date filed: November 30, 2012 Date of last action: December 6, 2011

Relief requested: Renewal of exemption from 49 USC §41301 to permit Aeromexico to conduct scheduled foreign air transportation of persons, property, and mail b etween Monterrey, Mexico, and Atlanta, Georgia by displaying its code on flights operated by Delta and/or Delta Connection carriers

. A eromexico requests that this exemption be renewed for a period of at least one year.

Applicant representative s : John R. Mietus, Jr. (Aer omexico ), 202

- 747

- 5212 ; Alexander Van der Bellen ( Delta ), 202

- 842

- 4184; and Lisa A. Harig (Compass), 703

- 247

- 5487

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

DISPOSITION

Action: Approved , in par t (subject to conditions), remainder deferred ( s ee Remarks below )

.

Action date: April 16 , 2013

Effective dates of authority granted : The exemption authority granted to Delta is effective April 16 , 2013 , through April

16 , 2015.

The exemption authority gr anted to Compass is effective April 16 , 2013 , through April 16 , 2015.

The renewed exemption authority granted to Aeromexico is effective April 16 , 2013

, through April 16 , 2014

.

3 Aeromexico’s exemp tion authority previously authorized it to display its “AM” designator code on Detroit

- Monterrey flights operated by Pinnacle Airlines, Inc. (Pinnacle)

. H owever
, Pinnacle’s exemption authority to serve the Detroit

- Monterrey market has expired, and it has ad vised us that it no longer serves the market ( See Docket DOT

- OST

- 2010

- 0129 ). Accordingly, we are not renewing Aeromexico’s exemption to the extent that it would place its designator code on flights operated by Pinnacle.Basis for approval (bilateral agreement/reciprocity): United States

- Mexico Air Transport Services Agreement

.
Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitations of our standard U.S. carrier exemption conditions attached as Appendix A ; our standard foreign air carrier exemption co nditions attached as Appendix B ; and, as to the authority granted to Aeromexico, to the otherwise

- applicable terms, conditions, and limitations of Aeromexico’s foreign air carrier permit (Order 91

- 5

- 25).

Special conditions/Remarks: We will approve the re quests of Delta and Compass for exemption authority, and the November 30, 2012 and January 16, 2013 requests of Aeromexico for renewal of its currently held exemption authority.

W e note , however, that we have not yet received notification from the Governme nt of Mexico that it has authorized

Aeromexico to conduct code

- share services by displaying its code on Delta or Compass flights in the Detroit

- Monterrey market, or by displaying its code on Compass flights in the Atlanta

- Monterrey market. Therefore, we w ill defer action on the March 22, 2013 and March 27, 2013 requests of Delta and Compass for statements of authorization, and the related requests of Aeromexico for amended exemption authority.

The U.S.

- Mexico exemption authority granted to Delta and Compa ss is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2

. Consistent with our standard policy, the dormancy notice period for

Delta’s Detroit

- Monterrey service will begin on June 10, 2013, Delta’s proposed start

- up date for the subject services.

The code

- share operations conducted under the exemption authority granted to Compass are subject to the following

conditions:

(a) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. 25 7 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that th e subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservations systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Compass nor Delta shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

Action taken by: Paul L. Gretch, Director Office of International Aviation

_________________________ ________________________________ ___________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant s w ere qualified to perform their proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and

Conservation Act of 1975. To the extent not granted or deferred , we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for revie w will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.govAppendix A

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for sched uled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federa l Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requ irements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transporta tion Security Administration has determined that security is adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Departme nt of Transportation, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with th e conditions imposed above.

1/2008

### Appendix B Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effectiv e authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly re ferred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administra tion’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirement s at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Departm ent Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C.

1605 (a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, inc lude a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizabl e in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracti ng Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the re porting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable law s of the United States.

This authority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title

49 of the U.S. Code.

12/2007